New Legislation to Make Chicago Conventions More Competitive

On May 27, 2010, the Illinois General Assembly enacted legislation in response to demands for a sweeping transformation in the way business is conducted on The Metropolitan Pier and Exposition Authority (MPEA) premises. As a result of this legislation, show management, contractors and exhibitors utilizing McCormick Place and the Navy Pier will realize immediate and long-term benefits, and Chicago will become an even more competitive and attractive destination for conventions, trade shows, expositions and meetings.

While this legislation was effective upon enactment, the implementation process has only just begun. Preliminary preparations have been underway, and the Authority will soon finalize a full-scale implementation plan in cooperation with its key partners. Certain changes will be implemented promptly. Other changes are wholesale modifications to the way business is conducted on these premises and thus will require a lengthier implementation period. The following are some examples:

·         While the legislation expands the type of work that exhibitors may perform in their booths, it directs the Authority to develop rules and regulations to ensure that these new exhibitor rights are exercised consistent with the training and safety requirements for such work.

·         Exhibitors may now unload and load privately owned vehicles using non-motorized hand trucks and dollies in areas designated by MPEA for such purposes.  The Authority must evaluate the logistics of this new policy and identify the areas where such unloading and loading may occur safely.

·         The legislation establishes new rules governing when show managers and contractors may charge exhibitors for labor services on a straight-time, time-and-one-half or double-time basis and how such services must be billed.  The implementation of this provision will require an audit of current wage structures and a new communications piece regarding labor costs and billing practices.

·         While the legislation eliminates “stand-by labor” and requires all union stewards to be “working stewards,” it authorizes the Authority to exercise its discretion to determine whether more than one working steward may be necessary depending on the building or show at issue.  The Authority will develop protocols for evaluating when more than one working steward may be required.

·         The legislation establishes a new Advisory Council to represent the interests of all stakeholders and regularly advise the Authority on critical operations issues.  To illustrate, the Authority now has the legal right to determine the work jurisdictions of “show labor” and crew sizes when appropriate on MPEA premises.  The Authority may only, however, exercise these rights after consultation with the Advisory Council. For this reason, the Advisory Council will be established as promptly as possible to facilitate a resolution of these important policy considerations.

·         At present, MPEA’s FOCUS One is the exclusive provider of electrical services to show managers and exhibitors.  By virtue of the legislation, MPEA may no longer serve as the exclusive provider, and customers may now choose either an in-house electrical contractor or an outside electrical contractor approved by the Authority.  The Authority will begin to develop a list of approved electrical contractors and modify the FOCUS One model to accommodate this change.

·         The legislation requires itemized billing statements for utility services provided by MPEA and establishes pricing guidelines for food and beverage contracts.  An audit of current practices and new communications pieces are necessary to implement this change.

·         The Authority is solely responsible for administering and enforcing these new legislative requirements and must now establish the necessary governing regulations and enforcement mechanisms, including procedures for audits and contract reviews.

Until further notice, currently contracted exhibitors should continue to rely on existing agreements, arrangements, practices and policies. In the meantime, the Authority will continue to finalize the full-scale implementation plan and will communicate changes promptly upon its completion.